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Trade Liberalization and Productivity Growth: Time-Series Evidence from Australian Manufacturing

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Author Info

  • Chand, Satish

Abstract

This paper uses historical annual data for twenty-seven years from 1968-69 on eight two-digit ANZSIC industries to assess the impact of the changes in industry assistance on economic efficiency. The empirical analysis shows that a 1 percent decline in the nominal rate of assistance leads to between 0.18 and 0.56 percent gain in total factor productivity, the latter the author's measure of economic efficiency. This finding has strong policy implications for the future of tariff reform in the manufacturing sector. Copyright 1999 by The Economic Society of Australia.

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Bibliographic Info

Article provided by The Economic Society of Australia in its journal The Economic Record.

Volume (Year): 75 (1999)
Issue (Month): 228 (March)
Pages: 28-36

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Handle: RePEc:bla:ecorec:v:75:y:1999:i:228:p:28-36

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Cited by:
  1. Renuka Mahadevan, 2002. "Trade liberalization and productivity growth in Australian manufacturing industries," Atlantic Economic Journal, International Atlantic Economic Society, vol. 30(2), pages 170-185, June.
  2. Alfons Palangkaraya & Jongsay Yong, 2011. "Trade Liberalisation, Exit, and Output and Employment Adjustments of Australian Manufacturing Establishments," The World Economy, Wiley Blackwell, vol. 34(1), pages 1-22, 01.
  3. Sanidas, Elias & Jayanthakumaran, Kankesu, 2006. "The Consequences of Trade Liberalisation on the Australian Passenger Motor Vehicle Industry," Economics Working Papers wp06-01, School of Economics, University of Wollongong, NSW, Australia.
  4. James Ted McDonald & Mita Bhattacharya & Harry Bloch, 2004. "Labour Productivity, Import Competition and Market Structure in Australian Manufacturing," Econometric Society 2004 Australasian Meetings 48, Econometric Society.
  5. Jayanthakumaran, K., 1999. "Trade Reforms and Manufacturing Performance: Australia 1989-97," Economics Working Papers WP99-13, School of Economics, University of Wollongong, NSW, Australia.
  6. McKibbin, Warwick J. & Wilcoxen, Peter J., 2013. "A Global Approach to Energy and the Environment," Handbook of Computable General Equilibrium Modeling, Elsevier.
  7. Satish Chand, 2004. "Sweet land or Sweat land: Two proposals for facilitating access to land and adjustment to eroding EU sugar preferences in Fiji," International and Development Economics Working Papers idec04-6, International and Development Economics.

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